Mumbai: Credit Suisse downgraded Oil and Natural Gas Corp to 'underperform' from 'neutral', citing rising risks to earnings in fiscal 201/13, despite noting the stock continues to trade as a discount to global peers.

The investment bank said the state-run oil explorer's earnings in the next fiscal year could be hit by a combination of lower domestic production, higher taxes, losses at subsidiary Mangalore Refiney and Petrochemicals Ltd, and a high base in the previous fiscal year.

Credit Suisse also cut its target price to 239 rupees from 315 rupees in a note dated on Tuesday.

Shares in ONGC were down 0.2 percent at 273.50 rupees as of 0444 GMT.


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